Entity-Purchase Agreement


  • A financial plan used by businesses with more than one owner where the company takes out a life insurance policy for each owner equalling the owner's stake in the business. If one of the owners dies, an entity-purchase agreement guarantees that the company will continue to run, while allowing the surviving owners to buy out the deceased owner's share of the business and evade any out-of-pocket expenses related to the deceased owner's passing.

business partner protection, business protection, equity purchase insurance, partner insurance

Related Terms and Acronyms

  • Business Continuation Insurance Definition,
    • Insurance that provides coverage in the event that someone integral to the operation of a business dies or becomes disabled.
  • Business Life Insurance Definition,
    • Life insurance that provides coverage in the event that a person key to the operation of a business dies.
  • Insurable Interest Definition,
    • Something of sufficient worth and benefit that an individual or entity would have reason to insure against its lost.
  • Life Insurance Definition, Very Important,
    • An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
    CanEquity offers life insurance.
  • Proprietor Definition,
    • The owner of a business or property.
  • Single Interest Insurance Definition,
    • Insurance that covers a single party when more than one party has a stake in a property.
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